McAfee to be acquired by group led by Advent, Permira, Crosspoint and CPPIB in deal with EV of more than $14 billion

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Cybersecurity company McAfee Corp. MCFE, +0.55% said Monday it has agreed to be acquired by an investor group led by Advent International Corporation, Permira Advisers LLC, Crosspoint Capital Partners, Canada Pension Plan Investment Board , GIC Private Limited, and a wholly owned subsidiary of the Abu Dhabi Investment Authority in a deal with an enterprise value of more than $14 billion and an equity value basis of about $12 billion. The news was first reported late Friday by the Wall Street Journal and sent McAfee shares up 20% in after-hours trade. The group will pay $26 per McAfee share in cash, equal to a premium of about 2.6% over McAfee's closing share price of $21.21 on November 4, the last trading day prior to media reports regarding the deal. The deal is expected to close in the first half of 2022. The company now has a 45-day "go-shop" period when it can solicit and review other deals. Shortly after the deal was announced, McAfee reported third-quarter earnings showing net income of $2.390 billion, including a $2.251 billion gain from the divestiture of its enterprise business. Revenue rose 24% to $491 million, ahead of the FactSet consensus of $466 million. Shares were down 3.4% premarket, but have gained 52.6% in the year to date, while the S&P 500 SPX, +0.06% has gained 25%.

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